'CBI coal probe separate from IMG panel'

The five companies facing an investigation by the Central Bureau of Investigation in the coal allotment controversy might not face immediate de-allocation.

A high-level inter-ministerial group (IMG) is examining cases involving 28 blocks allotted to private companies and not the ones being probed by CBI, a senior government official said.

After three months of preliminary enquiry, the CBI on September 4 registered cases against AMR Iron and Steel, JLD Yavatmal, Navbharat Power, Vini Iron and Steel and Jas Infrastructure under Sections 120B and 420 of the penal code, on criminal conspiracy and cheating. “The group is not looking at the blocks investigated by CBI or the ownership of companies getting coal blocks which had nothing to do with it. Its mandate is to look at cases where there has been a delay in production. So, the question of de-allocating blocks other than these 28 does not arise. We don’t have a status of the remaining blocks,” the official said, on condition of anonymity.

Officials said it appeared that in many cases the delays happened because of various regulatory issues and not primarily for a lapse on the part of the company allocated the block. “There were cases in which environment clearance was not given or forest clearance was not given by the state government. More, in some cases, the mines allotted to these companies were totally abandoned; there was hardly any coal. A few companies have recently started production. There were some gaps and those have been removed now,” said a government official.

The IMG, headed by Zohra Chatterji, additional secretary, ministry of coal, saw presentations last week by the companies being reviewed for failure to develop the allotted blocks. The companies gave details of the current status, investment made and implementation of end-use plant. The official aid approval of the end-user ministry was not required separately, as these ministries were part of the IMG.

The official also ruled out any huge impact on banks from a possible de-allocation in some cases, saying only a few companies had started production and loans hadn’t been disbursed yet.

The IMG is expected to give its report by this Saturday. It is to recommend action against the allocates found accountable for delay in production. It has also finalised guidelines for proportionate deduction of bank guarantees for a failure to achieve milestones for development of blocks.

The official said in some cases the projects did not even have a bank guarantee and the IMG would have to suggest alternatives in such cases.